Muffin Break and Jamaica Blue, sibling retail concept at the FoodCo group (which includes Dreamy Donuts), are growing as global brands. And while that’s great news for the franchisor, there is more to successful franchising than an ever-expanding portfolio, says managing director Serge Infanti.

“Retail is about emotional connection,” says Serge Infanti. And while service is a key factor in creating an engaging environment, clear brand positioning is essential, he says.

“We’re in the retail market and it changes every day, you’ll fail if you don’t keep the point of difference relevant. “We had become too homogenous with cafes, too close to the mainstream and about three years ago I wanted to get back to our points of difference. You have to evolve.”

Infanti pinpoints what he sees as the differentials of the best known brands in the stable: Muffin Break is the only muffin cafe chain in the country with a focus on wholesome, natural ingredients, baked fresh: the coffee based Jamaica Blue has a more funky feel and has won awards for its coffee blends.

“Jamaica Blue is highly accepted, it’s an upmarket shopping mall offer and can do up to 220 stores easily. Muffin Break is a mall concept. It always surprises me that we have 220 stores across Australia/New Zealand yet there is still more demand. More than 250 stores though will mean taking on high-risk sites.

“A lot of franchisors have growth for growth’s sake, they’re feeding the furnace. Our business doesn’t depend on this. We ask ‘Is it a great deal for franchisees? Is it right for the brand, is it strategic?’. I donÕt need to grow numbers for ego, I’m more keen on looking at opportunities.”

Overseas expansion

So how will the two major brands fare in overseas development? Muffin Break is moving into India, and expanding further across the UK; Jamaica Blue will open in Singapore and develop its Chinese and Middle Eastern businesses.

“I want to open in place that are strategically placed to ensure our brands be successful. In the growing economies — China, Singapore, India — there are young professional consumers. In India 70 percent of the population is under 35, they’re interested in international flavours. The Middle East is strategically well placed between Australia and the UK,” says Infanti. Muffin Break has built credibility in the UK market despite the hard economic conditions, he believes.

“We’ve stopped just investing in the UK and now we’re making money. Finding franchisees is not a problem. After the GFC the Government underwrote 50 percent loans of small business with banks. It’s fertile ground for a good brand and we’ve had three years fantastic growth, organic growth too.

“Jamaica Blue will launch in the UK with a different strategy, in the better socio economic areas in London. There’s a breakfast through to dinner offer.” Infanti does not have the US market in his sights.

“I’m not sure it’s that closely aligned. They dine differently, have different coffee tastes. There’s a very strong restaurant mentality, and fast food mentality. It could be a black hole. “I don’t want to be everywhere and I don’t want to do wrong by the domestic market. We can grow Singapore, China, Indonesia, UK.”

The Singapore licensee has first rights on Indonesia and Malaysia. The Indian market has been divided into northern, southern, eastern and western regions. Muffin Break will launch in the north, and after a few stores, the licensee has the option to take on the western region, and beyond.

“We don’t go too fast. Options depend on performance,” Infanti says. He acknowledges the rule of staying relevant is pertinent in the overseas markets too and predicts there will be local differences such as menu changes and decor and marketing collateral.

“The success of overseas business is based on mutual respect.” Along the way there will be mistakes he predicts, but the strength of the business partnership is not drawn from the security of a legal position but from mutuality.

“Contracts are no comfort, it’s about relationships. If you have passion, understand the brand, you can make it work. It’s like a marriage.”

So how will the three-brand business continue to grow in Australia?

“Am I motivated by acquisition? No. Am I motivated by adding to the business? Yes. My acquisition strategy is not buying something I’m not familiar with. If there was a state based chain with coffee that I know I could improve and grow, I would look at it.

“My current portfolio is growing at five percent per annum. We have 350 stores and keep chipping away because we do what we know.”